Discounted Cash Flow (DCF) Analysis Levered
Kellogg Company (K)
$67.175
-0.82 (-1.21%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 12,854 | 13,547 | 13,578 | 13,959.55 | 14,351.83 | 14,755.12 | 15,169.75 | 15,596.03 | 16,034.29 | 16,484.87 | 16,948.11 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||
| Operating Cash Flow | 1,646 | 1,536 | 1,176 | 1,526.46 | 1,569.36 | 1,613.46 | 1,658.80 | 1,705.41 | 1,753.34 | 1,802.61 | 1,853.26 |
| Operating Cash Flow (%) | |||||||||||
| Capital Expenditure | -501 | -578 | -586 | -580.72 | -597.04 | -613.82 | -631.06 | -648.80 | -667.03 | -685.77 | -705.04 |
| Capital Expenditure (%) | |||||||||||
| Free Cash Flow | 1,145 | 958 | 590 | 945.74 | 972.32 | 999.64 | 1,027.73 | 1,056.61 | 1,086.31 | 1,116.83 | 1,148.22 |
Weighted Average Cost Of Capital
| Share price | $ 67.175 |
|---|---|
| Beta | 0.424 |
| Diluted Shares Outstanding | 343.65 |
| Cost of Debt | |
| Tax Rate | 24.31 |
| After-tax Cost of Debt | 2.19% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.643 |
| Total Debt | 7,729 |
| Total Equity | 23,084.62 |
| Total Capital | 30,813.62 |
| Debt Weighting | 25.08 |
| Equity Weighting | 74.92 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 12,854 | 13,547 | 13,578 | 13,959.55 | 14,351.83 | 14,755.12 | 15,169.75 | 15,596.03 | 16,034.29 | 16,484.87 | 16,948.11 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,646 | 1,536 | 1,176 | 1,526.46 | 1,569.36 | 1,613.46 | 1,658.80 | 1,705.41 | 1,753.34 | 1,802.61 | 1,853.26 |
| Capital Expenditure | -501 | -578 | -586 | -580.72 | -597.04 | -613.82 | -631.06 | -648.80 | -667.03 | -685.77 | -705.04 |
| Free Cash Flow | 1,145 | 958 | 590 | 945.74 | 972.32 | 999.64 | 1,027.73 | 1,056.61 | 1,086.31 | 1,116.83 | 1,148.22 |
| WACC | |||||||||||
| PV LFCF | 990.95 | 972.32 | 954.04 | 936.10 | 918.50 | 901.24 | 884.29 | 867.67 | |||
| SUM PV LFCF | 4,723.28 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.78 |
| Free cash flow (t + 1) | 1,171.18 |
| Terminal Value | 42,128.78 |
| Present Value of Terminal Value | 33,357 |
Intrinsic Value
| Enterprise Value | 38,080.27 |
|---|---|
| Net Debt | 7,443 |
| Equity Value | 30,637.27 |
| Shares Outstanding | 343.65 |
| Equity Value Per Share | 89.15 |